Modvat credit denial for polishing wheel treated as a tool or appliance, not an eligible input under Rule 57A.

A polishing wheel used in the manufacture of dry cell batteries was treated as a tool or appliance working with an electric motor, rather than as an eligible input or a part of the machine. Because the relevant Explanation to Rule 57A excluded tools and appliances, Modvat credit was denied.

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Issues: Whether a polishing wheel used in the manufacture of dry cell batteries was eligible for Modvat credit as an input, or was excluded as a tool or appliance under the relevant Explanation to Rule 57A of the Central Excise Rules, 1944.

Analysis: The literature placed before the authority showed that the polishing wheel was in the nature of a tool or appliance working in connection with an electric motor. On that basis, it was treated as an independent tool or appliance and not as a part of the machine. The exclusion clause in the Explanation to Rule 57A therefore applied and credit was not available.

Conclusion: The polishing wheel was not eligible for Modvat credit and the appeal failed.

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